Midsummer Musings and AI IPO

We’re solidly in mid-summer, and the real estate market is predictably a touch calmer than the frenetic spring we typically experience.

For multiple reasons (vacations, buyer fatigue after a breakneck spring, the “normal” school rhythms disrupted), buyers can be distracted during this season and sellers often wait to list their home until everyone is back in town in the fall.

For the intrepid buyer, summer can be a great time to win a home with less competition. Similarly, sellers experience less competition as the number of new listings drops. In the end, the reduction in activity on both sides of the equation (buyers + sellers) means that the market remains a seller’s market. Listings may receive fewer offers than a spring home, but well-prepared listings still garner multiple offers and can have fantastic outcomes.

With the anticipated wave of AI Initial Public Offerings (IPOs) starting this fall, economists, Realtors, lenders are predicting that there will be an influx of wealth in the Bay Area as investors see their equity edge up. While most of us won’t benefit from these events, those who do will be faced with the question of where to park their millions. We may see some East Bay buyers very competitive at the higher end - homes selling for $3 million and more - but it’s likely that any IPO event won’t impact values across the board.

It’s fairly normal that some juicy event or topic threatens to upend East Bay real estate as we know it - I find that approximately once a year we have something to anticipate and talk about (thinking back: recession, pandemic, wildfire, insurance challenges, commission arrangements). But I’m amazed by the resilience and stability of our market and I doubt that even future AI IPOs will disrupt the market as we know it.

So, keep calm and carry on!